RBI MPC keeps repo rate unchanged at 4% unanimously, stance accommodative, says RBI Governor Shaktikanta Das
RBI Monetary Policy LIVE News: The central bank is expected to keep rates unchanged and maintain its accommodative stance in its first monetary policy committee meet for the new financial year
RBI Monetary Policy Committee LIVE Updates: The Reserve Bank of India’s rate-setting panel started discussions to firm up the next bi-monthly monetary policy on April 6 amid expectations that it might retain status quo on interest rate but change its monetary policy stance amid rising inflation on account of geopolitical developments. The Monetary Policy Committee (MPC).
Factors of importance
The ongoing Russia-Ukraine conflict and surging oil prices are pushing the cost of commodities higher, resulting in rising inflationary trends.
The government has mandated the central bank to keep the inflation at 4 percent, with an upper and lower tolerance level of 2 percent.
After the February MPC meeting, the RBI had decided to hold its key lending rates steady at record low levels for the 10th straight meeting to support a durable recovery of the economy.
Schedule for FY23
Meanwhile, the RBI has released a detailed the meeting schedule of its MPC for FY23.
As per the RBI Act, the MPC must meet a minimum of four times in a year, with the meeting schedule for a year to be published by the central bank at least one week before the first meeting for that year.
The six-member MPC is widely expected to make no change to the policy repo rate in its first meeting of FY23. This was held between April 6-8.
Further, the next MPC will meet on June 6-8, August 2-4, September 28-30, and December 5-7, before closing out FY23 with its final meeting in February 6-8, 2023, the RBI said in a statement on March 30.
The RBI will release its six-monthly Monetary Policy Report next week along with the MPC’s resolution. The Monetary Policy Report will be keenly eyed for the central bank’s inflation forecasts and the assumptions underpinning them.
With global crude oil prices skyrocketing in the wake of Russia’s invasion of Ukraine, all eyes will be on the price of India’s crude oil basket the RBI assumes in its models while arriving at its inflation forecast.
Stay tuned for the latest news, developments and updates on the expectations, announcement and reactions today!